Morgan Takes a Negative View of Property Giants ; Market Round-Up
Evening Standard - London › December 10, 2008
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Summary
IT'S not just homeowners who are facing up to the prospect of negative equity. The big property developers are also suffering from the condition, in which the value of the loans taken out exceed0 the worth of the properties they have bought.
According to Morgan Stanley, falls in the value of the UK commercial property to the end of 2009 show an increase in total negative equity from [pounds]13 billion to [pounds]41 billion. Morgan also says an increase in the amount of negative equity at risk from the need to refinance is likely to rise sharply from [pounds]2.6 billion to [pounds]8.2 billion.See the full content of this document
Extract
Morgan Takes a Negative View of Property Giants ; Market Round-Up
Since August, total returns on swapmarket expectations for capital growth in 2010 have turned negative, increasing the overall fall in property values predicted.
It has also extended t...See the full content of this document
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